General Fund - December 2021 (See attachment) (Preliminary Results)

These are preliminary results for the year ended 12/31/2021.  The city will be paying bills, collecting receipts and preparing journal entries related to 2021 over the next few weeks.  The monthly report shows currently a positive budget variance for the year of $3.5 million, in addition to the adjustments for payables/receivables, other significant adjustments will be for the carry-forward of unspent Coronavirus Fiscal Recovery Funds, investment market value adjustment (loss), and recommended General Fund balance adjustments.

Revenue variances (100% target)

• Revenues, in total, exceeded amended budget expectations.
• Licenses and permits are exceeding budget targets as a result of an influx in building permit revenue in 2021.
• Intergovernmental revenues exceeded budget targets, primarily as a result of unspent Coronavirus Fiscal Recovery Funds.
• Miscellaneous is currently below the budget target and will likely end up as a negative amount following the allocation of market value adjustment on investments (unrealized loss).

Expenditure variances (100% target)

• Overall expenditures are within the amended budget.  The City Council approved budget amendments were entered after their approval at the December 21, 2021 council meeting.
• Four departments minimally exceeded their amended budget targets (Facilities, Fire, Inspection, Park Maintenance). However, the overages are anticipated to have only a minor impact on final annual operating financial results.

Community Center/Ice Arena/Sand Venture - December 2021 (See attachment) (Preliminary results)

SandVenture - Net results are within a percent of the previous year and budget expectations for the full year.

Ice Arena - Net results exceeded last years results, but slightly below budget expectations for the year.

Community Center - Net results exceeded last years results, but below budget expectations for the year.

Quarterly Investment Portfolio Report - Q4, 2021 (See attachment)

Attached is the 4th quarter investment portfolio report including a cover page that provides a comparison of investment results over the past five years.  The report provided by Wells Fargo Securities encompasses the entire city investment portfolio, while the Securian investment report covers the longer term investments managed by Securian.

As required by the investment policy the report provides:

• Total return performance measured against the selected benchmarks for longer-term funds (Securian report page 3)
• Weighted average yield (Wells Fargo report page 3)
• The carrying basis, the current calculated accredited basis and the current market value (Wells Fargo report page 3)
• A listing of individual securities held at the end of the reporting period listed by maturity date (Wells Fargo report pages 15-17)

As a reminder, the city's investment policy is guided by the investment acronym SLY, which stands for Safety, Liquidity and Yield, and in that priority order.  Safety or principal is the foremost objective of the investment program.  Second, the investment portfolio needs to remain sufficiently liquid to meet day-to-day operation requirements.  Lastly, attaining a market yield is the third goal of the investment policy.  The first two priorities of safety and liquidity limit the ability of the portfolio to realize comparable private sector earnings in robust years.  However, the policy also minimizes the changes of experience losses in the down years.